United Rentals M&A and 4Q Results Presentation
(1)
Reconciliation of Net Cash Provided by Operating Activities
to EBITDA and Adjusted EBITDA
The table below provides a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA.
$ Millions
Net cash provided by operating activities
Adjustments for items included in net cash provided by operating activities
but excluded from the calculation of EBITDA:
Amortization of deferred financing costs and original issue discounts
Gain on sales of rental equipment
Gain on sales of non-rental equipment
Insurance proceeds from damaged equipment
Three Months Ended
December 31,
2019
Year Ended
December 31,
2020
2020
2019
$ 370 $ 442
$ 2,658
$ 3,024
(3)
102
(4)
(14)
(15)
3
6
Merger related costs (1)
Restructuring charge (2)
(6)
Stock compensation expense, net (3)
(24)
Loss on repurchase/redemption of debt securities and amendment of ABL
facility (5)
(24)
Changes in assets and liabilities
444
Cash paid for interest
Cash paid for income taxes, net
45
79
g༠༠|སྱེ༅ 8༅
89
332
313
3
8
6
6
40
24
(1)
(2)
(17)
(18)
(16)
(70)
(61)
(183)
(61)
241
170
483
581
142
318
238
EBITDA
Add back:
$
992
$ 1,119
$ 3,796
$ 4,200
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
Impact of the fair value mark-up of acquired fleet (4)
Adjusted EBITDA
1
6
2
17
18
24
16
70
61
15
17
49
75
$ 1,037
$ 1.154
$ 3,932
$
4,355
Reflects transaction costs associated with the BakerCorp and Blue Line acquisitions that were completed in 2018. We have made a number of
acquisitions in the past and may continue to make acquisitions in the future. Merger related costs only include costs associated with major
acquisitions that significantly impact our operations. The acquisitions that have included merger related costs are RSC, which had annual
revenues of approximately $1.5 billion prior to the acquisition, National Pump, which had annual revenues of over $200 million prior to the
acquisition, NES, which had annual revenues of approximately $369 million prior to the acquisition, Neff, which had annual revenues of
approximately $413 million prior to the acquisition, BakerCorp, which had annual revenues of approximately $295 million prior to the acquisition
and Blue Line, which had annual revenues of approximately $786 million prior to the acquisition.
(2)
(3)
(4)
Primarily reflects severance and branch closure charges associated with our closed restructuring programs and our current restructuring
program. We only include such costs that are part of a restructuring program as restructuring charges. Since the first such restructuring
program was initiated in 2008, we have completed five restructuring programs. We have cumulatively incurred total restructuring charges of
$350 million under our restructuring programs.
Represents non-cash, share-based payments associated with the granting of equity instruments.
Reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in
the RSC, NES, Neff and BlueLine acquisitions and subsequently sold.
(5)
Primarily reflects the difference between the net carrying amount and the total purchase price of the redeemed notes.
● United Rentals®
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2021 United Rentals, Inc. All rights reserved.
47View entire presentation